Bain & Company's undated cost-cutting brief claims a small bump in client retention can lift profit by more than a quarter, though the study behind it, if one exists, has never surfaced; this includes practices like yours, assuming you'd like proof before you believe it.
Practices that treat retention as an afterthought might be leaving money on the table, though this particular figure asks for more trust than it has earned.
| Original Research | Bain & Company's briefing on trimming costs, which uses a retention-to-profit example from financial services |
|---|---|
| Source | https://www.bain.com/insights/prescription-for-cutting-costs-bain-brief |
| Overview | A management consultancy brief about cost control uses a retention statistic to argue that keeping customers is cheaper than finding new ones. |
| Year | Not disclosed |
| Publisher | Brand, Bain & Company |
| Relevance to Wellbeing | The underlying logic, that retained clients are more profitable than new ones, applies to any practice with repeat clients, even though this particular figure was never built with that in mind. |
| Our Verdict | Too early to tell the number gets quoted everywhere but nobody, including Bain itself, says where it came from. |
| Our Summary |
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| Our Geo View | Applies broadly to all countries. |
Bain & Company published a brief on cutting costs and used a retention statistic from financial services to make its point, without saying where the statistic itself came from.
Bain & Company, publish date not disclosed. The figure reads as an internal claim rather than a citation from a named survey or report.
Credibility flags: no methodology given, sample size not disclosed, publisher type is a consultancy brand rather than an academic or government body.
A relevance score out of 100, built from three things: how well it fits the six practice types, how recent it is, and how solid the methodology behind it is.
Marked down heavily on how solid the method is, since no source or sample backs the number up, and marked down on practice fit too, since the example is drawn from financial services rather than wellbeing.
| Practice type | Relevance | Recommended action |
|---|---|---|
| Coaching | Medium | Focus renewal conversations rather than new client funnels. |
| Therapy | Medium | Highlight continuity of care in client communications. |
| Training | Medium | Offer loyalty incentives instead of discounting new sign-ups. |
| Alternative Healing | Low | Note the principle, but don't lean on the figure itself. |
| Clinical | Low | Watch attendance and drop-off rather than chase referrals alone. |
| Retreat/Centre | Medium | Invest in returning-guest perks over acquisition ads. |
Best before: revisit this one if Bain & Company ever publishes the study behind the number, or swap it for a properly sourced retention statistic sooner rather than later.
Most practice owners already sense that a returning client is worth more than a new one, they just haven't had the numbers to say so out loud, reliable or otherwise.
Well done, thinker. We love thinkers and they love our careful ways - our listening wind, story garden and visual river are all waiting for you in a twenty-five-minute coffee conversation that helps you rekindle faith in growing your practice. Milk and sugar?